Business Law Case Analysis

Business Law Case Analysis

Plaintiff: Panitia Penyelesaian Perselisihan Perburuhan Pusat (P4P)

Defendant: PT. Bouraq Indonesia Airlines

Case Background

The defendant is an Airlines Company that had 900 employees. The economic crisis followed with monetary crisis gave bad effects to the defendant. They should decrease the number of their airplanes form 9 to 2 airplanes. They also had to do the efficiency on their employees to 700. On the efficiency process, there was an agreement between the defendant and employees representation on October 30 1998. The agreement stated that they would bring Independent Public Accountant to analyze company financial condition. During the process, all side should work on their duty. The Defendant should pay employees’ wage. The agreement was not guarantee that didn’t mean the dispute process was over, but the negotiation still moved on. During the process, there was another agreement between the defendant and several employees. They agreed the finish the disputed process and the employees would get separation pay. Meanwhile, other employees, who were 153 people didn’t agree with that agreement. Because they didn’t agree each other, so the employees gave the case to the “Panitia Penyelesaian Perselisihan Perburuhan Pusat (P4P)”.

Reason From Unsatisfied Employee

They gave reason to P4P, that they were understood about the efficiency, but the productivity decreasing was not employees’ fault. Beside, there was an indication that the defendant would diversify the business, instead of paying employees’ separation pay.

Reason From Plaintiff

During the court, P4P issued the Decision Letter (No.660/48/17-10/IX/PHK/4-1999) that the defendant was not allowed to dismiss their employees. The reason was because there was not agreement between the defendant and the 153 employees. The defendant refused that Decision Letter because that would cause the defendant should give the job to the employees back and should pay their wage.